Commercial International Bank (Egypt) SAE

Nile Tower, 21/23 Charles de Gaulle Street, Giza 11511, Egypt

www.cibeg.com
EGX Symbol: COMI

News Release
12 July 2021
COMMERCIAL INTERNATIONAL BANK (“CIB”) REPORTS
SECOND-QUARTER 2021 CONSOLIDATED REVENUE OF EGP 6.36 BILLION AND NET
INCOME OF EGP 3.22 BILLION, OR EGP 1.92 PER SHARE, UP 24% FROM SECOND-
QUARTER 2020

Second-Quarter 2021 Consolidated Financial Results

o Net income of EGP 3.22 billion, up 24% year-on-year (YoY)
o Revenues of EGP 6.36 billion, up 2% YoY
o Return on average equity of 21.0%
o Return on average assets of 2.81%
o Efficiency ratio of 22.3%
o Net interest margin (NIM)1 of 5.62%

First-Half 2021 Consolidated Financial Results

o Net income of EGP 6.09 billion, up 22% YoY
o Revenues of EGP 12.6 billion, coming in flat YoY
o Return on average equity of 19.9%
o Return on average assets of 2.72%
o Efficiency ratio of 22.7%
o Net interest margin (NIM)1 of 5.65%

Resilient Balance Sheet

o Total tier capital recorded EGP 67.8 billion, or 32.0% of risk-weighted assets
o CBE local currency liquidity ratio of 62.8%, foreign currency liquidity ratio of 71.6% (comfortably above CBE
requirements of 20% and 25%, respectively)
o CIB remains well above the 100% requirement in the Basel III NSFR and LCR ratios
o High quality of funding, with customer deposits comprising 95% of total liabilities
o Non-performing loans coverage ratio of 204%

Supporting our Economy

o Funding to businesses and individuals grew by 9% over first-half 2021 to record EGP 149 billion, with a loan
market share of 5.16%2, and EGP 157 billion when considering securitized bonds to corporate clients
o Deposits grew by 13% over first-half 2021 to record EGP 385 billion, with a deposit market share of 6.67%2
o Loan-to-Deposit Ratio recorded 39% by end of first-half 2021, and 41% when including securitized bonds
o In second-quarter 2021, CIB’s operations generated EGP 1.64 billion in corporate, payroll, and other taxes

Committed to our Community

o CIB Foundation subsidized “South Valley University Hospitals (Qena University)” to establish a pediatric
surgery unit.
o CIB Foundation financed “The Egyptian Naval Forces New Children’s Hospital in Alexandria” with the
amount needed to purchase medical equipment and furniture for the Hospital outfitting, as well as for the
finishing of the medical and electro-mechanical works.
o CIB Foundation funded “Nile of Hope Hospital” with the final installment for purchasing a closed MRI
machine.
o CIB Foundation, in collaboration with Al Joud Foundation, sponsored “Al - Naas Hospital for Children’s
Heart” to cover 50 open heart surgeries.

1 Based on managerial accounts.

2 As of April 2021; latest available CBE data at time of print.

Investor & Media Contact: Sherif Khalil +20 (2) 37472543

CIB Second-Quarter 2021 News Release

o CIB Foundation supported “Shifa’ Al-Orman Hospital” with the amount needed to outfit the pediatric
department.

Awards & Rankings

o African Banker: Sustainable Bank of the Year
o Euromoney: Best Bank in Egypt
o Global Finance: Best Trade Finance Provider in Egypt
o Global Finance: Best Treasury and Cash Management Providers in Egypt
o Global Finance: Best Bank in Egypt
o The Digital Banker: Best Transaction Banking
o The Digital Banker: Best Bank for Payment Services
o The Digital Banker: Best Bank for Cash Management
o The Digital Banker: Best Supplier Financing Initiative
o The Digital Banker: Best Financial Chain Initiative in Egypt

CAIRO - Commercial International Bank (EGX: COMI) today reported second-quarter 2021 consolidated net income
of EGP 3.22 billion, or EGP 1.92 per share, up 24% from second-quarter 2020.

Management Commented: “Building on a strong first quarter of the year, CIB continued to outperform in the second
quarter of 2021, which further saw notable growth in the Bank’s balance sheet, particularly in local currency. Local
currency deposits grew steadily throughout the quarter, and local currency loans increased by 14%, adding EGP 13
billion in the quarter, back to the all-time high growth levels of early 2017. This reaffirms that, while continuing to
focus on growing the Bank’s deposit base, Management remains committed to the Bank’s role in supporting the
economy through funding businesses and individuals.

In line with this background, topline performance remained strong, benefitting primarily from robust deposit growth
and largely from the impressive revival in corporate lending, with the associated pick-up in trade finance and foreign
exchange trading activities, falling into line with improved economic prospects. This favorable turn of events
synchronized with the Bank’s flexible balance sheet structure, which served well in preserving the coherent balance
between profitability and liquidity. It is worth mentioning that the remarkable growth in loans, coupled with normalized
accumulation of provisions compared to last year, had not in any way impacted the Bank’s coverage for both expected
and unexpected losses, with loan loss provision balance covering 12% of gross loans, and regulatory capital base,
covering 32% of risk-weighted assets.

In continuation of the Bank’s leading role in Corporate Social Responsibility, CIB managed this quarter to secure the
initial approval of the Financial Regulatory Authority on the issuance of Green Bonds, becoming the first institution
in the Egyptian Economy to issue such bonds. This further emphasizes the Bank’s integral role in setting the tone for
Responsible Banking, through providing distinct support to businesses that are going green.

SECOND-QUARTER 2021 FINANCIAL HIGHLIGHTS

REVENUES
Second-quarter 2021 standalone revenues were EGP 6.32 billion, up 1% from second-quarter 2020. First-half 2021
standalone revenues were EGP 12.6 billion, down 1% from first-half 2020, wholly driven by 6% decrease in net interest
income, mostly offset by non-interest income coming 5x higher YoY.

NET INTEREST INCOME

First-half 2021 standalone net interest income recorded EGP 11.7 billion, decreasing by 6% YoY, with Total NIM
decreasing by 131bp, due mainly to the maturities of exceptionally-high-yielding bonds previously purchased.
Normalizing for the above-market-interest-rate-differential of the aforementioned bonds in first-half 2020, net interest
income grew by 9% YoY, generated at 5.65% Total NIM1, down 31 basis points (bp) YoY, with Local Currency NIM1
recording 7.41%, down 41bp, and Foreign Currency NIM1 recording 0.88%, down 66bp YoY.
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CIB Second-Quarter 2021 News Release

NON-INTEREST INCOME
First-half 2021 non-interest income recorded EGP 914 million, coming 5x higher YoY. Upon adding back contingent
provision charged, which is normally deducted from Non-Interest Income as part of Other Operating Expenses,
recording EGP 0.37 billion for first-half 2021 and EGP 1.08 billion for first-half 2020, standalone non-interest income
grew by 2% YoY. Trade service fees were EGP 390 million, growing by 18% YoY, with outstanding balance of EGP
86.1 billion3.

OPERATING EXPENSE
First-half 2021 standalone operating expense was EGP 2.92 billion, up 3% YoY. Cost-to-income reported 22.5%,
181bp higher YoY4, while remaining comfortably below the desirable level of 30%. Normalized for the aforementioned
2020 bond yield highs, cost-to-income came 130bp lower YoY.

LOANS
Gross loan portfolio recorded EGP 149 billion, growing by 9% or EGP 12.5 billion Year-to-Date (YtD). Growth was
driven wholly by local currency loans, which grew by 19% or EGP 17.0 billion, sufficiently offsetting foreign currency
net loan repayments of USD 280 million or 9%. CIB’s loan market share reached 5.16% as of April 2021. Securitized
Bond Portfolio, extended to Corporate Clients, recorded EGP 7.63 billion by end of first-half 2021.

DEPOSITS
Deposits recorded EGP 385 billion, growing by 13% or EGP 44.9 billion YtD. Growth was driven mainly by local
currency deposits, growing by 15% or EGP 37.8 billion, besides foreign currency deposits, adding 8% or USD 470
million. CIB’s deposit market share recorded 6.67% as of April 2021, maintaining the highest deposit market share
among all private-sector banks.

ASSET QUALITY
CIB maintained its resilient asset quality. Standalone non-performing loans represented 5.71% of the gross loan
portfolio, covered 204% by the Bank’s EGP 17.3 billion loan loss provision balance. First-half 2021 loan loss provision
expense recorded EGP 1.02 billion, 55% lower YoY.

CAPITAL AND LIQUIDITY

Total tier capital recorded EGP 67.8 billion, or 32.0% of risk-weighted assets as of June 2021. Tier I capital reached
EGP 61.0 billion, or 90% of total tier capital.
CIB maintained its comfortable liquidity position above CBE requirements and Basel III guidelines in both local
currency and foreign currency. CBE local currency liquidity ratio remained well above the regulator’s 20% requirement,
recording 62.8% as of June 2021, while CBE foreign currency liquidity ratio reached 71.6%, above the threshold of
25%. NSFR was 240% for local currency and 186% for foreign currency, and LCR was 2157% for local currency and
317% for foreign currency, comfortably above the 100% Basel III requirement.

3 Net of Collateral, Gross of Provisions.

4Cost-to-income is calculated using revenues after adding/deducting back contingent provision charged/released.
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CIB Second-Quarter 2021 News Release

KEY METRICS AND BUSINESS UPDATES5

 #1 private-sector bank in Egypt in terms of revenues, net income, deposits, and total assets
INSTITUTIONAL BANKING
 End-of-period gross loans were EGP 111 billion, coming 11% higher YtD, on 28% growth in local currency loans,
partially offset by 9% decrease in foreign currency loans.
 End-of-period deposits were EGP 138 billion, 23% higher YtD, on 24% growth in local currency deposits and
20% growth in foreign currency deposits.
 Gross outstanding contingent business reached EGP 90 billion, coming 4% higher YtD.
BUSINESS BANKING
 End-of-period gross loans were EGP 2 billion, 29% higher YtD, solely in local currency.
 End-of-period deposits were EGP 35 billion, 20% higher YtD, mostly on local currency deposit growth of 22%.
 Gross outstanding contingent business reached EGP 2 billion, 14% higher YtD.
RETAIL INDIVIDUALS BANKING
 End-of-period gross loans were EGP 36 billion, 3% higher YtD, wholly on 4% growth in local currency loans.
 End-of-period deposits were EGP 212 billion, 7% higher YtD, mostly on local currency deposit growth of 8%
besides 2% growth in foreign currency deposits.
 CIB continued to expand its network to reach a total of 184 branches and 28 units across Egypt, supported by a
network of 1,258 ATMs.

Loan, deposit, and outstanding contingent balances are based on managerial accounts.
5

Outstanding contingent balances are gross of collateral and provisions.

Growth in foreign currency balances is in real terms, excluding the effect of EGP appreciation by EGP 0.05 over first-half 2021.
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CIB Second-Quarter 2021 News Release

CONSOLIDATED FINANCIAL HIGHLIGHTS

QoQ YoY YoY
2Q21 1Q21 2Q20 1H21 1H20
Change change change
Income Statement
EGP EGP (2Q21 EGP (2Q21 vs. EGP EGP (1H21 vs.
million million vs.1Q21) million 2Q20) million million 1H20)
Net Interest Income 6,019 5,678 6% 6,282 -4% 11,697 12,477 -6%
Non-Interest Income 341 589 -42% (53) NM 929 173 438%
Net Operating Income 6,360 6,266 1% 6,229 2% 12,626 12,650 0%
Non-Interest Expense (1,471) (1,475) 0% (1,323) 11% (2,946) (2,848) 3%
Loan Loss Provision (318) (702) -55% (1,020) -69% (1,020) (2,260) -55%
Net Profit before Tax 4,571 4,089 12% 3,887 18% 8,660 7,542 15%
Income Tax (1,382) (1,209) 14% (1,320) 5% (2,591) (2,652) -2%
Deferred Tax 25 (6) NM 32 -22% 19 108 -82%
Net profit 3,215 2,873 12% 2,599 24% 6,088 4,998 22%
Minority Interest (2.0) 0.4 NM 0.0 NM (1.7) 0.0 NM
Net Profit After Minority 3,217 2,873 12% 2,599 24% 6,090 4,998 22%
QoQ YoY YoY
2Q21 1Q21 2Q20 1H21 1H20
Change change change
Financial Indicators
(2Q21 (2Q21 vs. (1H21 vs.
vs.1Q21) 2Q20) 1H20)
Profitability
ROAE 21.0% 19.3% 9% 21.1% 0% 19.9% 19.2% 4%
ROAA 2.81% 2.63% 7% 2.66% 6% 2.72% 2.54% 7%
Efficiency
Cost-to-Income 22.3% 23.1% -4% 19.2% 16% 22.7% 20.7% 9%
Liquidity
Gross Loans-to-Deposits 38.8% 38.0% 2% 42.2% -8% 38.8% 42.2% -8%
Asset Quality
NPLs-to-Gross Loans 5.69% 4.40% 29% 4.01% 42% 5.69% 4.01% 42%
Capital Adequacy Ratio 32.0% 31.5% 2% 29.5% 8% 32.0% 29.5% 8%

STANDALONE FINANCIAL HIGHLIGHTS

QoQ YoY YoY
2Q21 1Q21 2Q20 1H21 1H20
Change change change
Income Statement
EGP EGP (2Q21 EGP (2Q21 vs. EGP EGP (1H21 vs.
million million vs.1Q21) million 2Q20) million million 1H20)
Net Interest Income 5,997 5,676 6% 6,282 -5% 11,673 12,477 -6%
Non-Interest Income 323 590 -45% (43) NM 914 174 426%
Net Operating Income 6,320 6,267 1% 6,239 1% 12,587 12,651 -1%
Non-Interest Expense (1,446) (1,473) -2% (1,321) 9% (2,919) (2,845) 3%
Loan loss provision (317) (702) -55% (1,020) -69% (1,019) (2,260) -55%
Net Profit before Tax 4,557 4,092 11% 3,898 17% 8,649 7,546 15%
Income Tax (1,381) (1,209) 14% (1,320) 5% (2,590) (2,652) -2%
Deferred Tax 25 (6) NM 32 -23% 19 108 -83%
Net Profit 3,201 2,876 11% 2,610 23% 6,077 5,002 22%

QoQ YoY YoY

2Q21 1Q21 2Q20 1H21 1H20
Change change change
Financial Indicators
(2Q21 (2Q21 vs. (1H21 vs.
vs.1Q21) 2Q20) 1H20)
Profitability
ROAE 21.0% 19.4% 8% 21.2% -1% 19.9% 19.2% 4%
ROAA 2.80% 2.64% 6% 2.68% 5% 2.72% 2.55% 7%
NIM* 5.62% 5.67% -1% 6.99% -19% 5.65% 6.96% -19%
Efficiency
Cost-to-Income 22.0% 23.1% -4% 19.1% 15% 22.5% 20.7% 9%
Liquidity
Gross Loans-to-Deposits 38.7% 37.9% 2% 42.1% -8% 38.7% 42.1% -8%
Asset Quality
NPLs-to-Gross Loans 5.71% 4.41% 29% 4.03% 41% 5.71% 4.03% 41%
Direct Coverage Ratio 204% 279% -27% 257% -21% 204% 257% -21%
*NIM based on managerial accounts

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CIB Second-Quarter 2021 News Release

Jun-21 Dec-20 YtD Change Jun-21 Dec-20 YtD Change

BALANCE SHEET (Jun-21 Vs. (Jun-21 Vs.
EGP million EGP million EGP million EGP million
Dec-20) Dec-20)
Cash & Due from Central Bank 31,958 33,769 -5% 31,793 33,573 -5%
Due from Banks 79,378 87,426 -9% 79,080 86,997 -9%
Net Loans & Overdrafts 132,034 120,347 10% 131,252 119,632 10%
Financial Derivatives 292 249 17% 292 249 17%
Financial Investment Securities 211,011 173,764 21% 210,195 173,027 21%
Investments in Associates and Subsidiaries 324 140 132% 1,022 874 17%
Other Assets 14,152 12,148 16% 13,842 11,793 17%
Total Assets 469,149 427,842 10% 467,476 426,145 10%
Due to Banks 1,316 8,818 -85% 1,313 8,816 -85%
Customer Deposits 386,001 341,169 13% 384,956 340,087 13%
Other Liabilities 18,501 17,896 3% 18,440 17,838 3%
Total Liabilities 405,818 367,883 10% 404,709 366,740 10%
Shareholders’ Equity & Net Profit 62,850 59,476 6% 62,768 59,405 6%
Minority Interest 481 483 0% 0 0 NM
Total Liabilities & Shareholders' Equity 469,149 427,842 10% 467,476 426,145 10%